The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2016 and 2015:

The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2016 and 2015 2015 2016 Sales 16, 200,000 10,800,000 Cost of goods sold 9,800,000 6,600,000 Gross profit 6,400,000 4,200,000 Operating expenses 3.680.000 3,080,000 2,720,000 1.120,000 Operating income Gain on sale of division 720,000 3,440,000 1,120,000 Income tax expense 1,376,000 448,000 Net income 2,064,000 672.000 On October 15, 2016, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualifies as a component of an entity as defined by GAAP The division was sold on December 31, 2016, for $5,360,000. Book value of the division's assets was $4,640,000. The division's contribution to Jackson's operating income before-tax for each year was as follows 2016 $460,000 loss 2015 $360,000 loss Assume an income tax rate of 40% Required n each case, net any gain or loss on sale of division with annual income or loss from the division and show the tax effect on a separate line) 1. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) JACKSON HOLDING COMPANY Comparative Income Statements (in part) For the Years Ended December 31 2016 2015 S Income from continuing operations before income taxes 2,720,000 1,120,000 460.000 360.000 Income (loss) from operations of discontinued component 692,000 (1,272,000) Income tax benefit (expense) 1.908.000 888.000 Income from continuing operations Discontinued operations gain (loss) (360,000) Income (loss) from operations of discontinued component Gain on sale of division 720,000 260,000 (360.000) Income (loss) on discontinued operations S 2,168,000 528.000